Food trucks are no longer just a quirky city trend; they’ve become a booming part of India’s street food economy. From Mumbai’s shawarma vans to Delhi’s momos on wheels, the business has seen rapid growth. But with this rise comes an equally important question for food entrepreneurs: Do food trucks need to register under GST?
GST Rules for Food Trucks in India
Under the Goods and Services Tax (GST) framework, food trucks fall under the same category as restaurants and eateries since they serve prepared food. That means the tax rules are almost identical:
- Turnover Threshold: If your food truck’s annual revenue exceeds ₹20 lakh (₹10 lakh in special category states), GST registration becomes mandatory.
- Tax Rate: Food trucks, like small restaurants, are usually taxed at 5% GST (without Input Tax Credit) under the composition scheme.
- Aggregator Sales: If you’re selling through platforms like Swiggy, Zomato, or Uber Eats, GST registration is compulsory regardless of turnover, since aggregators are required to collect tax at source.
- State-to-State Movement: If your truck operates across state borders, GST registration is also required, even below the threshold.
Benefits of Registering Under GST
While small vendors may be tempted to skip registration if they’re below the threshold, there are clear advantages to being compliant:
- Credibility Boost – A GST number makes your food truck look more professional, especially when dealing with event organizers, corporate parks, or online platforms.
- Wider Reach – Without GST, you can’t legally partner with food delivery apps, missing out on a large customer base.
- Avoid Penalties – Operating above the threshold without registration can invite fines, interest, and even cancellation of business licenses.
Practical Example
Take the case of Bengaluru-based The Lalit Food Truck Company. Initially operating as a standalone truck, the brand expanded quickly and partnered with delivery platforms. Their decision to register for GST early not only ensured compliance but also made scaling smoother, helping them move into multiple cities.
Conclusion
So, do food trucks need GST registration? Yes—if you cross the turnover threshold, sell through aggregators, or operate interstate. Even if you’re under the limit, registering early can be a smart move for growth and legitimacy.
For any food truck entrepreneur, the bottom line is clear: GST isn’t just about compliance; it’s about future-proofing your business.










